The Liberty Dollar: An Update

Bernard von NotHaus, creator of the Liberty Dollar, was convicted in federal court in Statesville, N.C., on March 18. The Justice Department said he was found guilty — not of counterfeiting or of fraud, neither of which he was accused of, but “of making coins resembling and similar to United States coins; of issuing, passing, selling, and possessing Liberty Dollar coins; of issuing and passing Liberty Dollar coins intended for use as current money; and of conspiracy against the United States.”

Readers of this story in Liberty (“Attack on the Liberty Dollar,” March 2008) would have had little doubt of the outcome. The federal code, 8 U.S.C. 486, says:

“Whoever, except as authorized by law, makes or utters or passes, or attempts to utter or pass, any coins of gold or silver or other metal, or alloys of metals, intended for use as current money, whether in the resemblance of coins of the United States or of foreign countries, or of original design, shall be fined under this title or imprisoned not more than five years, or both.”

Von NotHaus always asserted that Liberty Dollars were lawful, arguing that the Constitution’s grant of power to Congress to coin money was not exclusive; that in the 1800s private mints were allowed to issue precious-metal currency, and that Liberty Dollars were not “coins” because they were not legal tender. Given the law cited above, none of these arguments was likely to persuade a federal court. In that sense von NotHaus was much like the tax protesters who argue that the federal income tax is illegal, or unconstitutional, or that it’s voluntary, and who try to win their arguments by asserting in a louder voice and a higher tone that they are right. These people invariably lose. It takes a while, because the government is slow, but it eventually gets them.

In announcing its victory, the Justice Department made its own political statements. According to US Attorney Anne Tompkins, “attempts to undermine the legitimate currency of this country are simply a unique form of domestic terrorism. While these forms of anti-government activities do not involve violence, they are every bit as insidious and represent a clear and present danger to the economic stability of this country. We are determined to meet these threats through infiltration, disruption and dismantling of organizations which seek to challenge the legitimacy of our democratic form of government.”

Trying to trade a privately minted coin of 999 fine silver for goods or services is hardly terrorism. Who would be terrified by it?

Liberty Dollars were indeed an attempt to undermine the public’s faith in US dollars, but they were never a “clear and present danger” to the Treasury, because no bank ever accepted them, and under the regulated system we have, no bank was ever going to accept them.

Von NotHaus’ organization was an economic venture set up to earn money — US-dollar money. It could sell Liberty Dollars at a profit into the collectible market, because the coins are beautiful and are of pure metal, and because of the political statement they make. (Several versions replace Miss Liberty with the head of Rep. Ron Paul.) But as a circulating currency, the Liberty Dollar was a failure. Probably it had the most success around Asheville, NC, where it had a diligent agent who is now facing prosecution as well. But he made such a poor living at it that he had to give up his storefront and operate out of his house.

The Liberty Dollar was a political act, a statement by a libertarian that he would offer the people a currency of valuable metal, now that the Treasury no longer did. Von NotHaus said as much, and he ambitiously named his company the National Organization for the Repeal of the Federal Reserve and Internal Revenue Code. He did this openly. An act of civil disobedience? Yes. But a conspiracy? My dictionary defines conspiracy as “a secret plan to commit a crime or do harm, often for political ends.” There was nothing secret about the Liberty Dollar. Von NotHaus took as much publicity as he could get.

For all the various counts he has been pronounced guilty of, Von NotHaus, 67, could be sentenced to as many as 25 years in prison and a fine of $250,000. The federal government is also asking the court for the 16,000 pounds of copper and silver Liberty Dollars and precious metals it seized, said to be worth nearly $7 million.

As I write, the “buy it now” price on eBay for a 1-ounce 999 silver Liberty dollar denominated at $20 is $50.

About this Author

Bruce Ramsey is a Seattle writer and author of Unsanctioned Voice: Garet Garrett, Journalist of the Old Right.